JERUSALEM, Nov 2 (Reuters) - A general strike by Israel's public sector workers was averted on Tuesday after their powerful union reached a compromise agreement with the finance ministry on pay and pension conditions.
The threatened strike would have shut down the country's air and sea ports and most other public services, including public transport and government offices, the Histadrut union said.
"The new pay agreement will see public sector workers get a 6.25 percent pay rise over three and a half years," a joint statement by the Histadrut and the finance ministry said.
"I think this is a good agreement that is honourable for both sides, I think the workers can be satisfied," Histadrut chairman Ofer Eini, who represents 700,000 workers told Army Radio.
The Histadrut had asked for a 10.5 percent pay rise to cover the three-year period between 2009-2011, or 3.5 percent per year. The government was offering 1.5 percent.
"This is a good deal for the economy, we can afford it within budgetary constraints and on the other hand there is fair compensation for the workers for inflationary erosion to their pay," Finance Minister Yuval Steinitz said. (Writing by Ori Lewis; Editing by Elizabeth Fullerton)